A BIG-NAME Stourbridge businessman, whose long-established housebuilding firm has gone into administration, has hit out at his bankers for pulling the plug on one of the region’s most successful businesses.

David Payne Homes Ltd - which was based in Stourbridge for 30 years before moving to Bromsgrove in 1997 - was forced to call in administrators KPMG Restructuring last month as the slump in the housing market continued to take victims.

And David Payne, the firm’s chairman and founder, this week launched a bitter attack on his long-time bankers Barclays - whose actions he claims have sounded the death knell for his life’s work.

The 67-year-old businessman told the News: “I feel completely abandoned and bitterly disappointed by Barclays who after 46 years of trading has decided to withdraw its support.

“Despite the downturn David Payne Homes Ltd continued to be solvent and in a strong position, having taken nine private reservations in the two months this year, and was in advanced negotiations for the sale of 17 plots to two housing associations.

“We had no overdue debts to our suppliers or sub-contractors and had an excellent reputation for prompt payment within the industry.

“We had not asked for any further capital and had in fact put forward a business plan which would have reduced Barclays’ exposure, however it would appear that Barclays group has taken the blanket decision not to trade with housebuilders any longer - leaving my business being forced into administration.

“As a small business I have experienced non of the support the Government has advocated banks should be providing in this economic climate and I feel David Payne Homes Ltd has been treated in the most brutal manner - leaving loyal staff, many of whom have served the company for 20 or 30 years, without a job.”

Founded in the early 1960s, David Payne Homes Ltd had become one of the region’s premier housebuilders.

With developments across the Black Country, the wider West Midlands and North Gloucestershire - the firm employed 50 staff and boasted a sub-contract labour force of more than 100 during the good times.

But administrators from KPMG Restructuring in Birmingham were appointed on February 6 after the business failed to gain funding to secure its future - and out of 37 remaining staff, 20 were made redundant.

Mark Orton, joint administrator, said there has since been a “high level” of interest from builders keen to build out or acquire the company’s existing development sites - which include The Pedmore in Stourbridge and Taylors Place in Dudley.

Lisa Kennedy, head of community relations for Barclays, said: “Barclays Commercial Bank has not taken any decisions around David Payne Homes lightly or suddenly; we have been assessing the company's situation and working with the company's directors since September to find alternative sources of funding, including discussions around an injection of capital.

“Unfortunately all of these efforts were unsuccessful.

“There has been no blanket decision to cease trading with the house building sector. We continue to support all industries and all businesses are assessed on their individual merit.”